At the end of the financial year when the credit union performs well, after providing for reserves and paying expenses, we give all the remaining profits back to our account holders in the form of a dividend.

As PCCU is a cooperative organisation we pay a dividend on account holder’s savings, unlike a bank that may offer an interest rate. As account holders own PCCU, savings are described as shares in the business; each share is entitled to the dividend when the Credit Union is successful. Dividends on savings are not guaranteed, as we cannot predict how we will perform over the next financial year however below we can illustrate what rate the dividend has been for the previous years.

This ensures that any profit that is made by PCCU stays within our community and does not go to faceless external shareholders. So it does not matter whether you have £5.00 or £5,000.00 with PCCU you will get the same rate of dividend on each share as everyone else. The dividend is only paid to active account holders; accounts that are dormant, where an account holder is deceased, left the credit union or a bad debtor will not accrue dividend or a loan interest rebate.

The dividend rate is proposed to account holders at the Annual General Meeting (AGM) in March by the Board of Directors based on the income from the previous financial year between October and September, taking into account for operating costs and reverse. At the AGM account holders can ask questions before deciding whether to approve the proposed dividend rate or reject it.

PCCU assesses your savings balance throughout the financial year on a daily basis, then allocates the agreed dividend to your easy access savings account.

Money that is reinvested in PCCU goes towards providing a better service for account holders in the future. We are also committed to improving the economic and social well-being of account holders by promoting thrift.

We cannot predict what the dividend will be for next year; however below we can illustrate what rate the dividend has been for the previous years.

Loan Interest Rebate

As an extra benefit to account holders who also take out loans from PCCU, when the Credit Union performs well we also give a rebate on the interest paid by the borrower. We believe it is a major benefit to account holders who choose to borrow from PCCU.

That means for every £10 of interest a member pays when borrowing from PCCU, the loan rebate will return £1.50 to them”

President Gerard Spain, speaking the 40th AGM in 2023

The dividend and loan rebate is paid gross, directly into your account shortly after the AGM. Since no tax is deducted, it is your responsibility to disclose the dividend to the HMRC.

How do we compare

According to the ‘Money Statistics February 2022′’ the average interest rate for an instant access savings account was 0.11% in January 2022. For a
cash ISA, the rate was 0.19%, down from 0.35% a year ago.

Year	Dividend on adult account	Dividend on Young Savers account	Loan Interest Rebate
March 2023	2%	2%	15%
March 2022	1.5%	1.5%	10%
March 2021	1%	1%	6%
March 2020	1%	1%	2%
March 2019	0.75%	0.75%	0.75%
March 2018	0.75%	0.75%	0.75%
March 2017	0.75%	0.75%	0.75%
March 2016	1.25%	2.5%	1.25%